CEVA announces cost-cutting measures

   Due to disappointing profit results for the third quarter of 2012, CEVA has announced plans to reduce costs and realign contracts in an effort to save 100 million euros ($129 million).
   “This was a disappointing quarter in terms of our profit performance,” CEVA Chief Executive Officer Marvin O. Schlanger said in a statement. Schlanger replaced the retiring John Pattullo last month.
   “Weak economic conditions continued to weigh on customer sentiment in the third quarter,” he said. “With no real prospect of a significant and sustained market recovery in the short term, we continue to focus our efforts on cost control to maintain our efficiency and on new business development to secure our future revenues.”
   According to the press release, the money-saving strategy will focus on selling, general and administrative expenses; freight management costs; and poorly performing contracts.   
   Revenue for the quarter rose by 5.1 percent, year-over-year, but before-tax earnings ended the quarter at 70 million euros, a year-over-year decline. For the year, EBITDA is off by 13.4 percent when compared to 2011. Freight management revenues for the first nine months of the year increased by 5 percent year-over-year.
   Higher revenues were propelled by the strength of ocean freight from Asia and the Americas, where officials saw a modal shift from air cargo, according to the press release. Net revenues in air freight, though, remained high. Weakness in the earnings numbers has been attributed to sluggish contract-logistics performances in Southern Europe, Africa and the Middle East. – Jon Ross